Government of
Meghalaya
Budget Speech

1981 – 82

By

Shri Maham Singh

Finance Minister,
Meghalaya

4th March,
1981

Mr. Speaker, Sir,

With your permission, I present the Annual Financial
Statement of Meghalaya for the year 1981-82 before this august House.

National Economy

It may be mentioned
that with the return to power of Shrimati Indira Gandhi as Prime
Minister, the Planning Commission has been reconstituted. The major
object of the revised Sixth Five Year Plan which has been finalised this
year is to promote the economy of the country in a manner designed
towards the ultimate realisation of an equitable, just and self-reliant
social order. In keeping with this purpose, the economic programmes to
advance the welfare of the Scheduled Tribes have been substantially
enlarged.

Under the dynamic
leadership of Shrimati Indira Gandhi, the economy of the country has
been gradually improving. With the dawn of the new year, the country has
returned to the right path of progress and all round development.
It is also heartening to note that the Central Government have taken
tangible steps for the accelerated development of the North-Eastern
region of the country. The people of Meghalaya are confident that with
the sympathy and understanding shown by the Centre, the standard of our
economy will show significant improvement in the near future.

Though prices continued to rise, the rate of
inflation during 1980-81 was milder, compared to that of 1979-80 when
prices rolled on relentlessly with hardly any pause. Index of whole sale
price increased by 13.2 percent during 1980-81 (upto January, 17)
against an increase of 19.1 percent in the corresponding period of
1979-80. Foodgrains production which crashed to 114 million tonnes
during the crop year 1979-80 made a substantial recovery and is expected
to reach 132 million tonnes in the current crop season. Similarly,
industrial production which registered a negative growth of 1.4 percent
during 1979-80 also improved significantly during the
current year. Power generation is expected to increase by 6 percent over
the preceding year. Coal production which stood at 106.9 million tonnes
in 1979-80 is likely to go upto 115 million tonnes during 1980-81.

Meghalaya's Economy

The economic situation prevailing in Meghalaya
during 1980 caused some anxiety, but on the whole it did not assume
alarming proportions. Agricultural production during the crop year
1979-80 increase nominally by 0.5 percent. Production of foodgrains
during 1979-80 came down to 1,41.000 tonnes from 1,50,000 tonnes in the
preceding year, while other crops registered an increase of 7.1 percent
. Despite the set-back in the early stages of operation due
to shortage of diesel, the available data suggest that production
of foodgrains will make significant recovery. The revised target
of foodgrains production of 1,62,000 tonnes for 1980-81 is likely to be
achieved. However, the production of jute, mesta and potato is expected
to be somewhat lower.

The supply position of foodgrains and other essential
commodities in the State continues to remain unsatisfactory due to
the situation prevailing in Assam, non-availability of railway wagons,
transport bottlenecks and other reasons beyond the control of the State
Government. Further, the Food Corporation of India could
supply only 50 percent of the Central pool rice
allotted to the State. The prices of essential commodities during
the year 1980-81 also remained high due to severe constraints in
procurement from outside the State. However, timely steps had been
taken by the Government to check it to the extent possible. The index of
retail prices in the Urban Areas registered an increase of 16 percent
during the year.

The Employment Exchange statistics
show that the un-employment situation has shown declining trends. The
number of job-seekers on the live register in the Employment
Exchanges has consistently been coming down from 10,564 in March, 1979
to 10,219 in March, 1980 and further down to 9,855 in November 1980.

Sixth Plan of Meghalaya

The National Development Council has recently
approved the frame work of the revised Sixth Five Year Plan covering the
period 1980-85. The approved outlay for the Sixth Five Year Plan for
Meghalaya has been fixed at Rs.235 crores.

The revised outlay for the year 1980-81 is Rs.43.31
crores which includes Rs.765.56 lakhs under the Minimum Needs Programme.

The size of the annual plan for 1981-82 has been
fixed at Rs.46.55 crores which also includes Rs.766.51 lakhs under
the Minimum Needs Programme. In addition to the above an amount of
Rs.286.94 lakhs has been allotted to Meghalaya for the schemes under the
regional plan of the North Eastern Council for 1981-82.

Despite difficulties like shortage of technical
personnel, building materials, etc., every effort is being made by the
State Government to achieve the target of development under various
sectors.

State Planning Board

The State Planning Board under the chairmanship of
Capt. W.A. Sangma, an able and experienced administrator, has made
valuable contribution in the formation of the various developmental
programmes by the Government. The Board periodically reviews the
progress of the Plan expenditure under various sectors, identified the
constraints, and gives valuable suggestions to the different departments
of the Government. The District Planning Boards and the District Level
Co-ordination Committees are playing an important role in the
developmental activities.

Agriculture

The main objective of the agricultural programme is
to attain self-sufficiency in food production in the near future, and to
extend the cultivation of cash and horticultural crops for increasing
the income of the farmers. The revised target of foodgrains production
for 1980-81 is likely to be achieved as mentioned earlier. A target of
1,72,000 tonnes of foodgrains production for 1981-82 is proposed to be
achieved through larger coverage under high yielding and improved
varieties of crops, application of fertilizers and pesticides, and also
by double cropping in the irrigated areas. Demonstrations to show the
effect of fertilizers on cereal crops for higher production conducted
during the current year will be continued in the next year
also.

During the current year, improved and high yielding
variety seeds have been distributed to the farmers at 50 percent
subsidised cost. The same programme will continue during 1981-82.

The approved plan outlay for 1981-82 is Rs.171 lakhs.

To meet the shortage of agricultural graduates,
stipends have been granted to students to assist them in prosecuting
their studies in various agricultural colleges in the country. During
the current year, more than 100 students are receiving stipends. The
programme will be continued.

A number of new minor irrigation projects were taken
up during 1980-81 with a coverage of about 3,400 hectares. New schemes
area also proposed to be taken up during 1981-82 with an additional
coverage of about 3,000 hectares.

For minor irrigation, the proposed outlay in 1981-82
is Rs.1 crore as against the allocation of Rs.85 lakhs in the current
year. The implementation of the Meghalaya Agricultural Produce Act, 1980
and the establishment of regulated markets in the State will help the
farmers to dispose of their produce at economic prices.

Soil Conservations

Jhum cultivation continues to be a major problem of
the State. It is expected that the government's long range programme of
replacing shifting cultivation by permanent cultivation with
the necessary inputs along with the programme of encouraging
cultivation of cash crops of low volume and high value would ultimately
meet the desired object of eradicating this wasteful method. During
1981-82, it is proposed to provide irrigated land to 350 families at one
hectare per family. It is also proposed to take up cash crop
cultivation in about 375 hectares which will benefit 375 families. The
two coffee nurseries set up in East Khasi Hills and West Garo Hills in
the current year are expected to provide the necessary seedlings in
1981-82. Necessary technical help and guidance to all the farmers
engaged in these cash crop plantations would continue. The Soil
Conservation Training Institute at Byrnihat is going to be
expanded from the year 1981-82. To augment the existing
nurseries. The approved plan outlay for 1981-82 is Rs.150 lakhs.

Animal Husbandry

The agro-climatic condition of Meghalaya is highly
conducive to livestock rearing and promotion of this occupation can play
a prominent part in improving the economy of the rural population.
Besides supplementing the income of the farmers, the much needed
protective foods like eggs, meat and milk will be available in greater
abundance.

The proposed plan outlay for Animal Husbandry and
Dairy Development programme for 1981-82 is Rs.96 lakhs and Rs.16 lakhs
respectively. Under the intensified cattle development project, ten more
stock-men centres are proposed to be established. The programme of
rearing of poultry, piggery and sheep is proposed to be further
intensified. The Veterinary services to provide extension facilities to
the people will be expanded. A Marketing Cell will be started during the
next year.

Fisheries

With a view to exploiting the topographical and water
resources of the State, more fish farms are proposed to be
established. The rearing of high yielding and fast growing species
like grass carp and silver carp will be increased to have wider coverage
The scheme for enriching the fish fauna at high altitude stream by the
introduction of trout culture will be vigorously implemented in the year
1981-82. As against the current year's revised allocation of Rs.16.60
lakhs the approved plan outlay for 1981-82 is Rs.18 lakhs.

Forestry

Meghalaya offers enormous scope for development of
forests. It is necessary to have an integrated programme for developing
forestry to meet both the social and commercial needs. Forests properly
planned and developed on scientific lines will help the growth of small
and large scale industries besides meeting the fuel, fodder and other
domestic needs of the people. They also play an important role in
checking soil erosion and preserving the richness and fertility of the
soil.

Compared to the geographical area of the whole State,
the area under Government Reserved Forest is very small as most of
the forests in the State fall within the jurisdiction of the
District Councils. Due to indiscriminate felling of trees, serious
damage has been caused to the valuable forest wealth of the State. To
remedy the situation, the State Government have embarked upon a
programme of the Government Reserved Forests. During the current
year, an area of about 749 hectares of barren land has been
converted into mixed forest plantation and in the next financial year,
it is proposed to raise another 968 hectares of plantation. The
achievement of the target of social forestry programme in the State
would depend to a large extent on the co-operation of the people. The
State Government have also taken steps to regulate the movement of
timber outside the State with the Co-operation of the District Councils
by imposing certain restrictions. Efforts would be made in the next
decade to bring at least 10 percent of the area of the State under
forest cover. The State Reserved Forests are being operated
scientifically and during the next financial year, it is proposed
to bring a substantial area under valuable forest plantation. An
experimental programme of planting fruit trees by school children is
being taken up. Government will continue grants-in-aid to District
Councils and it is also proposed to monitor the programme taken up with
such grants-in-aid. The approved plan outlay for 1981-82 in this sector
is Rs.85 lakhs.

Community Development

The Community Development movement is well suited for
a State like ours, where the traditional way of life of the people is
democratic. This movement is of special significance for creating
enthusiasm among the rural people to participate in the developmental
activities. The State is now covered by 30 Community Development blocks
including the six which have been created this year. The addition of
six new blocks in the State will be of real benefit to the people. The
Integrated Rural Development Programme is being continued and extended
and the method of implementation will be improved.

The approved Plan outlay for 1981-82 is Rs.70 lakhs
under Community Development Programme. Under the Integrated Rural
Development Programme, the next year's approved outlay is Rs.53
lakhs against the current year's revised allocation of Rs.36.60 lakhs.

Co-operation

The programme of linking the reorganised primary
co-operative societies with the Meghalaya State Co-operative &
Marketing Federation Limited will be continued and intensified. Some
more items of essential commodities and consumer goods under the
Public Distribution System will be taken up and the marketing of the
produce and distribution of agricultural inputs will continue to the
channelised on a wider scale covering larger areas. To enable them to
cope with the growing volume of activities and to function more
effectively, 159 societies out of the 180 reorganised societies, have
been provided with full time secretaries. The co-operative handloom
weaving societies, have been reorganised and their functioning is being
improved. Steps for reorganisation of Industrial Co-operatives
have been initiated. The Meghalaya State Marketing and Consumers'
Federation will continue marketing-intervention to protect farmers
from the distress sale of their produce. A few more agro-custom centres
are proposed to be established in the Border areas. The Meghalaya
State Housing and Financing Co-operative Societies Limited is issuing
housing loans to the members of the primary housing co-operative
societies and assist in the construction of shops in identified
growth centres in the coming year. The State Co-operative Union has held
seminars, workshops, etc, to motivate and facilitate spread of education
in co-operative principles among the people. To ensure that the
co-operative societies function more effectively, the supervisory staff
of the department is being strengthened.

As against the current year's revised
allocation of Rs.66.15 lakhs the approved plan outlay for 1981-82 under
Co-operation including Storage and Warehousing is Rs.78 lakhs.

Flood Control & Irrigation through
P.W.D.

The Public Works Department is continuing the scheme
of construction of embankment under the Flood Control programme to
protect the villages and towns exposed to floods. Under the Irrigation
programme, the work on the Ryngai Valley Project and Shella Irrigation
Project is expected to be taken up as soon as they are cleared by the
Central agency. The approved plan outlay for 1981-82 under Flood Control
& Irrigation through P.W.D. is Rs.40 lakhs.

Power

The Meghalaya State Electricity Board has
started work on the Umiam-Umtrew Stage-IV Hydel Project. The 132 KV Line
on the Shillong-Nangalbibra section along with the associated
sub-station is expected to be completed soon. The work on the 132 KV
Nangalbibra-Tura Line is also making good progress and is expected to be
completed by March, 1983. The Board proposes to electrify another
200 villages next year under rural Electrification Programme.
Investigation of the following hydro-electric projects are proposed to
be taken up in 1981-82.

(1) Myntdu (Leska) in Jaintia Hills

(2) Kynshi in West Khasi Hills

(3) Umiam-Umtrew Stage -V in East Khasi Hills

As against the current year's revised allocation of
Rs.859 lakhs, the approved Plan outlay for 1981-82 is Rs.900 lakhs

Mineral Resources

Government have decided to set up a
separate Mineral Development Corporation. In 1981-82 various
geological investigations including chemical analysis will be taken up.

The approved outlay for 1981-82 is Rs.20 lakhs.

Industries

The approved outlay for Industries for
1981-82 is Rs.129 lakhs.

The second phase of the expansion, project of
the Mawmluh-Cherra Cement Limited is expected to be completed by the
next year. The civil construction for the proposed Watch Assembly Unit
at Shillong is in progress. The Bamboo Chipping Project in Garo
Hills is likely to be commissioned by the next financial year.

The Meghalaya Industrial Development Corporation
continues to help in the establishment of industries in the State by
providing margin money and other facilities, particularly to local
entrepreneurs.

For the development of small Industries, the
State Government have set up a District Industries Centre. Two
more such centres are proposed to be set up. The Meghalaya Handicraft
Development Corporation has taken up training of local artisans
under the Master Craftsman Training Scheme and four such training
centres have since been opened. Efforts are being made to increase the
number of these training centres and to arrange marketing of products
of the artisans.

Training of local artisans and entrepreneurs to equip
them better for self-employment or for earning better wages in various
trades will continue. The Government are keen that the development
of small, tiny and village industries is accelerated in order to
create more employment opportunities in the rural areas. The Government
will also take steps to revitalise the existing traditional industries
and thereby raise their productivity.

Sericulture & Weaving

Sericulture and Handloom Weaving are two
important cottage industries in our State which provide at present
part-time employment to over 18,000 people. These people are
mostly in rural areas and therefore, these industries play a vital role
in generating additional income to the weaker sections. In 1981-82, the
proposed outlay for Sericulture and Weaving is Rs.36 lakhs under the
State Plan and Rs.5.40 lakhs under the border Areas Programme. Necessary
steps have been initiated to increase the mulberry plantation by about
70 hectares, eri by about 100 hectares and muga by about 100 hectares in
1981-82. In the field of weaving , it is proposed to establish in
1981-82 three more new Handloom Demonstration-cum-Production Centres of
which one will be under the Border Areas Development
programme. One Handloom Production Centre is also proposed to be
started next year and will be attached to the existing
Weaving Training Centre. Assistance to the reorganised handloom
co-operative societies is being continued. Government will continue to
train up more persons and build up necessary infrastructure for meeting
the progressive needs in this sector.

Roads

In Meghalaya, a good road communication system
is indispensable for efficient and timely execution of development
programmes, getting favourable return from them as also for bringing the
administration closer to the people. It has, therefore, been given very
high priority. Emphasis has been given to the construction of roads
linking mining, industrial and agricultural belts with the marketing
centres and other roads connecting the interior with the administrative
centres.

The State Government have been impressing upon the
Centre the need for declaring some of the major roads of the State
as National Highways and Hon'ble Members will be glad to know that the
Centre has recently declared Paikan-Dalu road (NH 51) as a National
Highway.

As against the current year's revised allocation of
Rs.690 lakhs the approved plan outlay for 1981-82 for Roads is Rs.780
lakhs.

Although substantial investment in this sector has
been made in the past few years, yet, by the end of March, 1982 the
State will have a road density of only 22 kms. per 100 sq. km.
against the national road density of 41 kms. per 100 sq. km.

Road Transport

The building up of a larger and better road transport
system is an important pre-requisite for the social, agricultural and
industrial advancement of the people of Meghalaya. The marketing of our
produce and the procurement of essential commodities from outside,
making them available to the interior places depend solely on the smooth
running of the transport system within the State. With a view to
improving the service and overall performance of the Meghalaya Transport
Corporation, efforts are being made to in crease the fleet of vehicles,
to provide better amenities to the traveling public and to improve the
efficiency of the Corporation. Accordingly an outlay of Rs. 175 lakhs
has been provided for 1981-82 against the current year's revised outlay
of Rs.90 lakhs. In view of the rise in the prices of spare parts, tyres,
tubes and chassis as also the P.O.L. it has become necessary to raise
the fare and the freight. The Corporation also proposes to take up
improvement of station buildings at Tura, Shillong, Jowai and Nongpoh
and to establish a Central Workshop in Shillong in the coming
year.

Tourism

Shillong Umiam Lake and a few selected tourist spots
in Jaintia Hills and Garo Hills will be developed as places of
interest and attraction for the tourists. During 1981-82, it is proposed
to spend Rs.40 lakhs for the development of tourism as against a
provision of Rs.17 lakhs during 1980-81.

Education

One of the major constraints in the effective
implementation of developmental programmes is the shortage of local
technical personnel. Several measures both long-term and short-term to
overcome this problem have been initiated. Higher priority has been
given to the programme of strengthening of science education at all
levels. Science and Mathematics are proposed to be made compulsory in
all the secondary schools in the State. To encourage teaching and
studies in Science and Mathematics, some incentives to teachers and
students are proposed to be introduced. It is also proposed to publish
Science and Mathematics text books in local languages.

It has been decided to introduce science education in
all the colleges up to Pre-University level where science has not been
introduced and to introduce Science upto Degree level where there is
Science only upto Pre-University level.

Preparatory steps have been taken for starting
electrical and mechanical engineering courses in the Shillong
Polytechnic.

The State Council for Educational Research and
Training has undertaken research and survey and has conducted training
in various fields. To clear the backlog of untrained teachers at
secondary level, B.Ed. courses are being started in Government colleges
at Tura and Jowai Commencing from the academic year 1981.

A public school on the pattern of the Pine Mount
School, Shillong will be started at Tura from March, 1981 with
classes from K.G. I to Class IV with boarding facilities for about 30
children.

Government propose to continue to assist the
Meghalaya Board of School Education to enable it to start construction
of its own buildings at Tura.

As against the current year's revised allocation of
Rs.199 lakhs, the approved plan outlay for 1981-82 under Education
including Arts and Culture is Rs.219. lakhs.

Health

Although the State Government are keen to
provide proper medical facilities to the people of the State, it
has not been possible to achieve fully this objective owning to
the dearth of doctors and other trained personnel. To combat this
deficiency, vigorous efforts have been made to depute students to
various medical institutions specialised courses. With the approval of
the Indian Medical Council, housemanship training has been started
from the beginning of this year at the Civil Hospital, Shillong
initially in Medicine, Surgery, E.N.T. and Ophthalmology.

The provision of additional beds in the Hospitals at
Shillong and Tura, expansion and improvement of the Pasteur
Institute at Shillong which is financed by the North-Eastern Council and
the construction of three more primary health centres at Raingdo,
Sohsniang and Mawhati are expected to be completed during 1981-82. The
primary health centre at Nongtalang has been commissioned. Construction
of two more primary health centres with 20 new sub-centres, and 4 new
sub divisional Hospitals at Baghmara, Mairang, Amlarem and Nongpoh
are proposed to be taken up during the next year. Homeopathic
dispensaries have been established at Tura and Jowai, in addition
to the one at Shillong. The Engineering Wing under the Health department
will be strengthened in order to expedite construction of new buildings
and to ensure proper maintenance of the existing ones.

As against the current years, revised allocation of
Rs.170.77 lakhs the approved plan outlay for 1981-82 for Health is
Rs.185 lakhs.

Water Supply

The period 1981-1991 has been declared as the
International Water Supply and Sanitation decade. The aim of the
Government is to supply to all the towns and villages in the State
within this period with safe and potable drinking water. The Sixth Plan
outlay under this sector is Rs.45.39 crores of which Rs.21.10 crores has
been earmarked for rural water supply schemes. In the Sixth Plan, it is
proposed that 2,927 villages will be provided with drinking water and
during 1981-82, schemes for 400 villages are proposed to be taken up.
The new Jowai Phase-I Water Supply Scheme has been completed and
commissioned. Efforts are being made for early completion of the Greater
Shillong, Tura Phase-II and Umkhen Phase-II Water Supply Schemes.

The approved plan outlay for 1981-82 under Water
Supply including Sewerage is Rs.750 lakhs.

Municipal Administration

At present, we have two Municipal Boards in the
State at Shillong and at Tura. Town Committees have also been
constituted by the respective District Councils at Jowai and Baghmara.
The Municipalities and Town Committees which provide civic amenities to
the public have not always been able to meet their full financial
requirements out of their own resources. It is expected that they
will try their best to find out ways and means of raising funds for
maintaining and improving their services.

Social Welfare

Programmes of training, rehabilitation and employment
of persons afflicted by physical and mental ailments will be
considerably expanded during 1981-82. The department will arrange
vocational training to the physically handicapped persons for
self-employment. Government have been implementing most of the social
welfare schemes with the help of voluntary organisations. Financial
assistance will continue to be given to these organisations in their
social welfare activities.

The approved plan outlay for 1981-82 under Social
Welfare including Nutrition Programme is Rs.30 lakhs.

Border Areas

The programme to revive the economy of the people
inhabiting the areas bordering Bangladesh who were adversely affected
due to partition has been expanded and intensified. The approved
outlay in the Sixth Plan for Border Area Development is of the order of
Rs.10 crores. As against an outlay of Rs.160 lakhs for the current year,
an amount of Rs.179 lakhs has been provided for 1981-82 under this
sector.

The main thrust of the programme is to provide a
net-work of link roads to facilitate transportation of the agricultural
produce of the border areas for better marketing.

The programme for supplementing in the border areas,
schemes relating to animal husbandry, sericulture and weaving ,
fisheries, etc., will be continued. It is also proposed to introduce a
new scheme, viz. "Range Management of Rearing Cattle" in
certain identified areas in the border with a view to augmenting the
cattle population and also for producing good stock of hybrid
cattle.

The scheme of providing transport subsidy for
carriage of essential commodities to the border areas and the transport
facilities provided for carriage of border produce for better marketing
will continue. It is also proposed to open more agro-custom centres
through the agency of the Meghalaya State Co-operative Marketing and
Consumer's Federation.

Since the time the Meghalaya State Co-operative Marketing
and Consumers' Federation Limited started marketing -intervention, the
producers of the border areas have been getting remunerative prices. The
Federation will continue this programme whenever felt necessary.

Information and Public Relations

The Information and Public Relations Organisation
will widen its sphere of activity so as to inform the people as to the
various developmental activities of the Government. The department will
also give due publicity in connection with the new methods of scientific
cultivation, health care, employment, trade and commerce. With the above
objective in view, it is proposed to intensify its activities by opening
one more office in the sub divisional headquarter at Amlarem in the
coming year.

The department will continue to educate the people
through its various media of publicity like hand bills, exhibitions,
film shows, etc., and keep them informed of the latest developments. A
documentary film "Meghalaya" has been produced in the current
year in collaboration with the Films Division of the Government of
India.

The approved plan outlay for the next year for
Information and Public Relations remains at Rs.3 lakhs.

Statistics

Statistical data and information provide valuable
guidelines in the formulation of polices, planning of developmental
programmes and are also useful for evaluation of achievements. During
the current year, the Directorate of Statistics has undertaken standard
analysis of the results of the crop-cutting experiments on paddy, jute
and potato. For the first time an index of agricultural production, area
and yield for the State was also constructed and sent to the appropriate
authorities for their technical comments. During the year, compilation
of the State's fist Statistical Abstract has been completed.
Compilation of the District Statistical Abstract of Garo Hills for 1978
has been completed and is being released.

The Directorate has completed the table on the first
economic census according to the programme of the Government of India.

The approved plan outlay for Statistics for 1981-82
is Rs.6 lakhs.

Administrative & Residential
Buildings

The State Government propose to construct a satellite
township around Shillong to ease the congestion in the town and for this
purpose and amount of Rs.1 crore has been earmarked for acquisition of
land, etc., in 1981-82. construction of office buildings and residential
quarters at the headquarters of the new districts and subdivisions will
continue. A major portion of the current year's plan allocation of
Rs.53.50 lakhs will be spent for the above purpose as also for the
construction of Circuit Houses. A major portion of the land
required for the Mairang Sub divisional Headquarter Complex has been
acquired and the construction of the office buildings and residential
quarters at Mairang are expected to commence in the next financial year.
The approved plan outlay for the next year under this sector is Rs.49
lakhs.

Election

Bye-Elections are due to be held for Shillong
Parliamentary Constituency and Assembly Constituencies of Selsella
and Mahendraganj. As per the directions of Election rolls is
being taken up in these constituencies.

Pay Commissions

As the Hon'ble Members are aware, the
recommendations of the Meghalaya Pay Commission, 1979 have been
implemented with certain modifications. the State Government have set up
an official committee to go into the question of anomalies arising out
of the said report. Government have also granted three installments of
Dearness a of Dearness Allowance on the basis of the formula recommended
by the Commission.

Food Civil Supplies

In spite of the situation in Assam, difficulties in
getting railway wagons in time, shortage of petroleum products and other
circumstances beyond the control of the State Government, the State
Government have been able to mitigate scarcity of commodities, more
particularly the essential commodities in the State. At present, the
supply of petroleum products has improved and the flow of essential
commodities is expected to return to normal levels before long.

Civil Defence & Home Guards

The State Government attach great importance to
training of people particularly in the rural areas in Civil Defence and
Home Guards, so that they may cultivate a greater sense of discipline
which is essential in day-to-day life and more so at the time of natural
calamities. So far, 493 Urban Home Guard Volunteers have been trained in
the District Training Centres at Shillong, Jowai and Tura and 11
persons deputed for higher training outside the State. Home Guards have
now been deployed to guard the Meghalaya Secretariat buildings and other
important public buildings and offices in the State. Five
companies and one platoon of the Border Wing Home Guards have been
deployed in the Indo-Bangladesh border under the border Security Force.
The Organisation would continue to expand its activities.

District Councils

In May, 1980 , a Conference of the Chief Executive
Members and Executive Members of the District Councils was called by the
Chief Minister for better co-ordination between the Government and
the District Councils. In pursuance to the recommendations of the
meeting a number of steps have been taken by the State Government. In
1981-82, an amount of Rs.30 lakhs has been earmarked for the
development works undertaken by the District Councils under the Plan
provision of the State and Rs.1.30 lakhs under non-Plan.

Land Reforms

The approved outlay for 1981-82 is Rs.30 lakhs as
against the revised allocation of Rs.29.50 lakhs during 1980-81. The
main scheme under the land reforms programme is cadastral survey and
preparation of record of rights in the State. With the passage of the
Meghalaya Land Survey and Records Preparation Act, 1980, the State
Government have started the survey operation in selected areas in the
East and West Garo Hills Districts and Jaintia Hills District. The
entire operation is likely to be completed in about fifteen years.

Environmental Pollution

The State Government are aware of the hazard of
industrial pollution with their concomitant adverse effects on the
inhabitants of both urban and rural areas

Before issuing any licence for setting up any
industry, Government will always take into consideration the problem of
pollution of air and water.

The policy of preventing pollution of water and
air will also apply in case of setting up of complexes both under the
public and private sectors. Government expect that the above measures
together with the policy of industrial dispersal and
afforestation will go a long way in combating this menace which is being
debated seriously all over the world. The State Government are
determined to take steps so that the ecological balance is not disturbed
by large scale mining and forest operation.

Judicial Administration

In order to enable the officers to dispose of court
case in time, two more posts of Judicial Magistrate for Shillong have
been created. The State Government are considering the introduction of a
scheme of free legal aid to the poor.

Home (Police)

There is acute shortage of residential
accommodation for the police force in the entire country. With a view to
provide a larger number of subordinate police staff with residential
accommodation, construction of family quarters and barracks
has been undertaken under the Police Housing scheme in the State
Plan. To supplement the efforts under the Plan, Government of India will
also provide a grant of Rs.181 lakhs to Meghalaya during the Five
Year Period 1979-80 to 1983-84 to complete a specified number of
quarters and barracks, under the award of the Seventh Finance
Commission. For construction of the headquarter of the first Meghalaya
Police Battalion, the Government of India will similarly make a grant of
Rs.100 lakhs. The department has entrusted part of the construction
relating to Police Housing to the Meghalaya Government Construction
Corporation.

Law & Order

Hon'ble Members are aware that as compared to
the preceding year, the year, the year 1980-81 has been one of
peace and tranquility. To a large extent this was made possible due to
the strict vigilance and timely action by the Government against
anti-social elements. Government wish to place on record their sincere
appreciation to the people of Meghalaya for their full co-operation in
curbing the illegal acts of a few misguided elements.

The State Government are determined to ensure that
the rights regarding freedom of life and property of the people as
guaranteed under the Constitution of India are fully protected and
communal harmony is effectively maintained. Government acknowledge the
helpful role played by the Hon'ble Members of this august House in
this regard. The Government are also grateful to all the Members of the
House for their constructive attitude in our unflinching endeavour
to ensure that the population structure of the State is not
disturbed to the detriment of the local inhabitants. The progress
of our State depends on an atmosphere of peace and tranquility.
Government are confident that the whole-hearted co-operation of the
Hon'ble Members of this House and the people of the State will always be
forthcoming in the endeavour to maintain communal harmony.

Actuals 1979-80

The year opened with a negative cash balance of
Rs.156.38 lakhs, but the State Government had held Rs.860.00 lakhs in
the Government of India Treasury Bills on the 1st April, 1979.
There was a total receipt of Rs.40,496.92 lakhs and a total expenditure
of Rs.40,686.14 lakhs in that year under all accounts resulting in
a deficit of Rs.189.22 lakhs. Thus the negative cash balance of
Rs.156.38 lakhs was increased to Rs.345.60 lakhs at the end of the year.
On the other hand, the State Government's holding in the Treasury bills
also increased to Rs.1,173.75 lakhs. In effect, the year 1979-80
virtually closed with a surplus of Rs.828.15 lakhs.

Revised Estimates 1980-81

The revised estimates of receipt and
expenditure on all accounts for the current year are Rs.43,409.41 lakhs
and Rs.43,243.91 lakhs respectively resulting in a surplus of Rs.165.50
lakhs. This will reduce the opening negative cash balance of Rs.345.60
lakhs to Rs.180.10 lakhs at the end of the year.

Budget Estimates 1981-82

I would like to give a broad picture of the budget
estimates for the next year. The receipts on revenue account are
estimated at Rs.8,414.94 lakhs and the estimated expenditure on revenue
account at Rs.6,391.08 lakhs. An estimated surplus of Rs.2,023.86 lakhs
on revenue account is anticipated.

The receipt and expenditure outside the revenue
account are estimated at Rs.38,316.91 lakhs and Rs.40,226.90 lakhs
respectively leaving a deficit of Rs. 1,909.99 lakhs. Together
with the estimated revenue surplus of Rs.2,023.86 lakhs, an overall
surplus of Rs.113.87 lakhs is anticipated which would be completely
wiped out by the estimated negative opening balance of Rs.180.10
lakhs, leaving a deficit of Rs.66.23 lakhs.

Mobilisation of Additional Resources

With a view to reducing the deficit and also to
fulfill our target of additional resource mobilisation committed to the
Government of India and the Planning Commission, the State Government
propose to introduce the following measures :-

1. To increase purchase tax on timber other
than converted timber from 15 percent to 30 percent.

2. To increase royalty on minor minerals (sand and
gravel) by 50 percent over the existing rate.

5. To increase Excise Duty on Country Spirit in
East and West Garo Hills districts from 50 paise to 70 paise per
bottle of 750 m.l.

6. To increase the license fee of the following:-

(a) Foreign liquor shops in the State from the
existing rate of Rs.400 each to Rs.800 each.

(b) Bonded Warehouses in the State from the existing
rate of Rs.1,000 each to Rs.2,000 each.

(c) Canteen license in the State from the existing
rate of Rs.200 each to Rs.400 each.

7. To increase the availability fee at the following
rate :-

(a) Whisky, Brandy, Gin, Rum- from the existing rate
of Rs.3 to Rs.5 per case of 12 bottles of 750 m.l. and 600 m.l.

(b) Beer, Cider, Perry, Ale and other fermented
liquor from the existing rate of Rs.1 to Rs.3 per case of 12
bottles.

These measures are expected to yield additional
revenue to the extent of Rs.36 lakhs during the year.

In the absence of depots of major manufacturing
companies in the State itself, consumers in Meghalaya have
to shoulder extra burden in the from of inter-state sales tax for
purchases made within the State. In view of this, a number of
commodities like motor tyres, tubes, etc., are being purchased from
outside the State. It is, therefore, proposed to reduce the rate
of sales tax in respect of items (1) to (9) and (10) (a) to (16)
of the schedule attached to the Meghalaya Finance (Sales Tax) Act
to 7 percent. It is expected that this step will help in the increase of
sales within Meghalaya and thus lead to an increase in the revenue of
the State.

It is, however, not proposed to take any measure to
cover the remaining gap at this stage. We shall, however, constantly
review the receipt and expenditure during the course of the year and
take appropriate steps to cover the remaining gap also.

During the last few years, Meghalaya has made
impressive strides in the field of social and economic development and
has taken its rightful place in this great country of ours. India
has been fortunate that its destinies have been presided over by eminent
and farsighted statesmen whose wise and understanding leadership, has
earned a position of honour and respect for the country in the comity of
nations. It contribution in championing the cause of economic and
political freedom of the les developed countries of the world is most
significant. The nation however, cannot be strong if any part of
it remains weak. We have a great responsibility to see that the country
grows in strength and dignity. We can achieve this goal by sheer hard
work for the all-round progress of our State. In this noble task, let
every one of us join hands and march shoulder to shoulder to build up a
united, prosperous and progressive Meghalaya.

With these words, Sir, I present the Budget for
1981-82 for consideration and acceptance of the House.

Thank you, Sir.

ANNEXURE

THE FINANCIAL POSITION FOR THE YEAR 1981-82 WITH
CORRESPONDING
POSITION IN THE PREVIOUS YEARS.